If your home in Massachusetts relies on a septic system, you already know how essential it is to your property. However, when something goes wrong, many homeowners are surprised by what their insurance covers—and what it doesn’t. Understanding how your policy handles septic system issues can save you from unexpected stress and costs down the road.
What’s Usually Covered
A standard homeowners insurance policy through Vargas & Vargas Insurance, serving Dorchester, MA, is primarily designed to protect your home and attached structures from sudden, unexpected damage. For example, if a storm causes a tree to fall and crush part of your septic system or if a fire damages nearby equipment, your insurance may help cover the repairs. These are examples of direct, covered perils.
However, most septic system problems stem from gradual wear and tear, inadequate maintenance, or age. If the system backs up because it wasn’t pumped on time, or pipes crack due to years of wear and tear, your insurance typically won’t cover those repairs. In these cases, the costs are the homeowner’s responsibility.
Options for Extra Protection
Some insurance companies offer endorsements that can be added to your homeowner’s policy. These endorsements provide additional coverage for underground service lines, including septic systems, and may help cover damage caused by shifting soil or invasive tree roots. This modest addition to your policy could save you thousands if an unexpected issue arises.
A Good Time to Review Your Policy
Septic system troubles can be messy and expensive. That’s why it’s a good idea to review your homeowner’s insurance and consult with your Massachusetts agent at Vargas & Vargas Insurance, serving Dorchester, MA. We can help you evaluate your current coverage and determine if adding extra protection is a smart move for your situation. Taking the time now can ensure you’re better prepared for surprises later.
If your condo became unlivable after a fire or water disaster, could you afford to live elsewhere while it’s being repaired? Have you checked whether your condo insurance includes enough “loss of use” coverage to pay for temporary housing and other extra expenses? Many Massachusetts condo owners are surprised at how little coverage they actually have when they file a claim. In this article, we’ll explain how loss of use coverage works in a standard HO6 condo insurance policy, show you how to calculate your actual limits, and help you decide if you need to make changes before a loss happens.
Section 1: What Is an HO6 Condominium Insurance Policy?
An HO6 policy is a personal condo insurance policy that covers:
Your personal property (furniture, electronics, clothing, etc.)
Interior unit upgrades (like cabinets, flooring, appliances not covered by the condo association)
Personal liability
Loss of use—the focus of this article
Your condo association’s master insurance policy covers the structure and common areas—but not your belongings or your temporary living expenses.
Section 2: What Does “Loss of Use” Coverage Mean in an HO6 Policy?
Loss of use (also called Additional Living Expenses or ALE) helps pay for the cost of:
Rent for a temporary home
Utilities (heat, electricity, water)
Laundry or meals if your temporary housing lacks those amenities
Other necessary costs that go above and beyond your normal living expenses
💡 In Massachusetts, most HO6 policies calculate this coverage as a percentage of your personal property limit.
Section 3: How to Calculate Your Actual Loss of Use Limit
Let’s break it down with a real-world example:
📌 If your policy has:
Personal property limit: $25,000
Loss of use limit: 30%
👉 Then your maximum ALE payout is $7,500
Now ask yourself:
Would $7,500 cover 3–6 months of rent, utilities, and other added costs in your area?
Could you afford temporary housing while still paying your mortgage, condo fees, and taxes?
In many major Massachusetts cities and towns, temporary housing alone could easily run $2,500–$3,500 per month.
Section 4: What Your Condo Association’s Policy Doesn’t Cover
A major misconception is thinking the condo association’s master policy will step in.
🚫 It won’t cover:
Your personal belongings
Your hotel or apartment costs
Your temporary utilities or meals
Any loss of use expenses whatsoever
That’s why your HO6 policy is essential—and why having enough coverage matters more than ever.
Section 5: What You Can Do to Avoid Financial Stress at Claim Time
Here are 3 steps you should take today:
✅ Review your HO6 policy Look for the Loss of Use or ALE section and see the current coverage percentage.
✅ Do the math Calculate whether the actual dollar amount would cover 3–6 months of temporary living costs.
✅ Talk to your independent insurance broker You can often increase your personal property coverage (which boosts your ALE automatically) for a very reasonable cost.
Prepare Now—So You’re Not Scrambling Later
If your condo was damaged in a major loss, you’d likely have to move out for months—and continue paying your mortgage, condo fees, and taxes. Would your current HO6 policy cover the costs of temporary housing?
Now that you understand how Loss of Use coverage works—and how it’s calculated—you can take action before a disaster hits.
📞 Call Vargas & Vargas Insurance client, call us at 617-298-0655 to review your current coverage.
Did you know that in 2024, a vehicle was stolen every 37 seconds in the U.S.?
Ever wonder why summer months bring more than just heat — like a rise in car thefts?
If you’ve ever walked away from your car wondering, “Did I lock it?” — this article is for you. Car theft doesn’t just happen in big cities or sketchy neighborhoods. It’s fast, opportunistic, and often avoidable.
Today, we’ll break down why vehicle theft is on the rise and exactly what you can do to reduce your risk — in three simple but powerful steps.
Why Summer Is Prime Time for Car Theft
Thieves don’t take vacations. But car owners often do.
Summer brings:
More travel and unfamiliar parking locations
Increased distractions (especially at gas stations or roadside stops)
Windows left cracked for heat relief
All of this creates opportunities for theft, especially when combined with simple slip-ups like leaving keys in the ignition “just for a minute.”
🚘 1. Take Your Keys — Always
This sounds obvious, but you’d be surprised how often it’s ignored.
Even if you’re running into the gas station or dropping off a package, leaving your car running or unlocked — even for a moment — is like sending an open invitation.
Pro tip: Push-to-start vehicles are especially risky if the fob is in your pocket and you forget the engine’s still running.
🚘 2. Lock Up Everything — Not Just the Doors
Make it a habit to:
Roll up all windows (yes, even that little one you leave cracked)
Double-check that your sunroof is sealed
Secure your trunk and glove box, especially if you store valuables or documents inside
Thieves often look for easy access — not necessarily to take the car, but to grab your stuff.
🚘 3. Park Smart — It Makes a Bigger Difference Than You Think
Where you park is half your protection.
Aim for well-lit, high-traffic areas
At home, consider installing motion lights or a camera
Don’t rely only on alarms; visibility and deterrents work better
If you’re traveling, avoid long-term lots with little security or monitoring.
Conclusion: The Best Theft Protection Is Prevention
At the end of the day, car theft isn’t just a big-city problem — and it’s more common than you think, especially in summer.
By staying mindful of where you park, how you secure your vehicle, and what small habits you practice daily, you’re reducing your risk by more than half.
You came here wondering if your car could be a target. Now, you know how to make sure it isn’t.
🔐 Next step: Share this with someone heading out on a road trip this summer — and take a few minutes today to check your own car safety habits.
Want more tips like this — or a second opinion on your auto insurance coverage?
Let’s chat. The Vargas & Vargas team is here to help you feel confident that you’re protected from more than just what’s “under the hood.”
Has the recent news stories made you wonder: “Am I protected if a riot or protest damages my home or car?” Do you know whether your insurance policy would cover damage caused by civil unrest, looting, or vandalism? These are legitimate concerns—especially during times of social or political tension. In this article, we’ll break down exactly what types of riot-related damage are typically covered by your homeowners, renters, and auto insurance policies—and what steps to take to protect your property and peace of mind.
Section 1: Is Riot Damage Covered by Homeowners Insurance?
Yes—most standard homeowners insurance policies do cover damage caused by:
Riots
Civil commotion
Vandalism
Fire resulting from unrest
Smoke damage
Theft (if caused during a covered event)
This includes:
Damage to your home’s structure (like broken windows, graffiti, fire)
Personal property losses (like stolen electronics or damaged furniture)
✅ Important: Coverage applies as long as the damage wasn’t intentional or caused by the policyholder.
Section 2: What About Renters Insurance?
Renters insurance usually covers riot-related damage to personal belongings, not the building itself (that’s the landlord’s responsibility).
For example:
If your apartment is broken into during a protest and your laptop is stolen, your renters policy would typically pay to replace it.
Section 3: Are Vehicles Covered During Riots?
Only if you have comprehensive auto insurance.
✔️ Comprehensive coverage includes:
Damage from riots
Vandalism
Fire
Theft
Broken windows
🚫 If you only have liability coverage, damage to your own vehicle won’t be covered.
💡 Tip: If you live in an area experiencing unrest, consider moving your vehicle to a safer location like a garage or gated facility.
Section 4: 3 Smart Steps to Take During Civil Unrest
✅ Review your policy limits and deductibles Make sure your coverage amount still makes sense based on today’s replacement costs.
✅ Document your belongings Keep photos or videos of valuables in case you need to file a claim.
✅ Add or update endorsements If you own high-value items (jewelry, art, collectibles), make sure they’re scheduled properly—they may not be fully covered under standard limits.
Stay Calm, Covered, and Informed
In times of uncertainty, one thing you can control is knowing where you stand with your insurance coverage. Riot, civil commotion, and vandalism are generally covered under most homeowners, renters, and auto policies—but only if your coverage is current and comprehensive.
📞 If you’re a client of Vargas & Vargas Insurance, call us at 617-298-0655 with any questions or to review your protection. 🤝 If you’re working with a claims adjuster or another independent broker, reach out now to make sure you’re fully covered—before something happens.
Have you seen online or heard the misinfoirmation that insurance brokers pocket 80% of your premium?
And are you now wondering whether working with a broker is just throwing money away compared to going straight to an insurance company?
Here’s the truth: that 80% number is wildly misleading. In this article, you’ll learn what brokers actually get paid, why that compensation exists, and how brokers often save you money—especially at renewal time.
Where Does the 80% Claim Even Come From?
A few social media personalities have spread the idea that insurance brokers take up to 80% of your premium. But what they’re not telling you is this:
That number typically refers to certain one-time life insurance commissions, not to your home, auto, or business insurance premiums—and even then, it doesn’t reflect actual earnings after service costs, taxes, and overhead.
What Insurance Brokers Actually Earn
Let’s clear it up: brokers typically earn between 11% and 15% of your premium. This isn’t just for selling you a policy—it covers:
Year-round customer support
Claims assistance
Annual policy reviews and remarketing
Access to multiple insurance carriers
Local, personalized service
And yes, that commission keeps staff employed in your community. We’re not faceless call centers—we’re your neighbors.
📊 A quick breakdown of your $1,000 premium:
Insurance company: ~$880
Broker compensation: ~$120
Why a Broker Can Actually Save You Money
I started as an agent in 1980—selling for one company only. If rates went up or coverage changed, you were stuck.
That’s why I became a broker. Brokers aren’t tied to one company. We shop 10 or more carriers to find the best deal, especially at renewal time when your premium might unexpectedly jump.
Agents = 1 option. Brokers = Multiple.
Which one gives you more leverage?
Is a Broker Right for Everyone?
Not always. If you already get discounts for bundling through a direct insurer, or if you’re loyal to one company no matter the rate, working directly may suit you just fine.
But if you want flexibility, price comparisons, or someone to handle the messy parts of insurance for you—brokers are built for that.
Conclusion: Let’s Get You Better Coverage for Less
Now that you know brokers don’t take 80%—and in fact, often help you avoid overpaying—what’s next?
If you’re tired of rate hikes, limited options, and waiting on hold when things go wrong, we can help.
Let us compare your policy across multiple carriers. You might be surprised what you’re missing.
The team at Vargas & Vargas Insurance can be reached at 617-298-0655 to help you get clarity, control, and confidence in your coverage—year-round.
Have you ever filed a claim and been surprised your insurance company didn’t pay the full amount right away? Are you confused by terms like “depreciation” or “holdback” listed on your claim settlement? You’re not alone—this is one of the most common pain points in the claims process. In this article, we’ll explain what a holdback is, why insurers use it, and how it applies to both structural repairs and contents (personal property) claims. You’ll also learn what steps you need to take to recover the full amount you’re owed.
Section 1: What Is a Holdback in an Insurance Claim?
When you file a property damage claim, your insurance company may withhold part of your payout. This withheld amount is called a holdback, and it’s tied to depreciation—the estimated loss in value due to age, wear and tear, or obsolescence.
💡 Example: A damaged 10-year-old roof might cost $12,000 to replace. The insurance company subtracts $4,000 for depreciation and pays you $8,000 initially. The $4,000 holdback is paid later, once you show proof the roof was actually replaced.
Section 2: Why Do Carriers Hold Back Part of the Payment?
Insurance companies don’t want to overpay for losses that aren’t repaired or replaced.
Here’s why holdbacks are used:
✅ To avoid fraud or misuse of funds
✅ To encourage proper repairs or replacement
✅ To protect against overvaluation of older items
✅ To ensure compliance with Replacement Cost Value (RCV) policies
A holdback is essentially the insurer saying, “Once you prove the work or replacement is done, we’ll release the rest.”
Section 3: How a Holdback Works for Personal Property (Contents) Claims
This surprises many policyholders: holdbacks also apply to personal property, not just your home or roof.
Let’s say a fire destroys furniture, electronics, and clothing. Here’s how it typically works under an RCV policy:
🪑 Example – Replacing a computer
Original value: $2,000
Depreciation: $800
Initial payout (ACV): $1,200
You buy a new computer and send the receipt
Insurer releases $800 holdback = ✅ Full $2,000 reimbursed
📷 Important: If you don’t replace the item (or buy a less expensive version), you may not get the full depreciation back.
✔️ To recover the holdback for contents, you usually need:
Receipts or invoices for replaced items
Photos (if required)
Itemized inventory of damaged/lost property
Proof that replacement occurred within the insurer’s required timeframe
Section 4: ACV vs. RCV—Which One Do You Have?
Holdbacks only apply if you have a Replacement Cost Value (RCV) policy. If your policy is Actual Cash Value (ACV) only, depreciation is deducted—and you won’t recover that amount later.
🔍 Know your policy type:
RCV = You can recover depreciation with proof of replacement
ACV = You get a depreciated payout only
Section 5: How to Recover Your Holdback (Step-by-Step)
To get the full payout, including the holdback:
✅ Complete the repairs or replacement
✅ Save receipts, invoices, or estimates
✅ Submit documentation to your insurance company
✅ Follow up with your adjuster if needed
Tip: Ask your adjuster early: “What proof will you need from me to release the holdback?”
Protect Yourself by Understanding the Process
At the end of the day, a holdback isn’t a trick—it’s a standard part of how many insurance policies work. Whether you’re repairing a roof or replacing lost personal property, understanding depreciation and proof-of-replacement rules helps you get every dollar you’re entitled to.
Now that you know how holdbacks work for both structural and contents claims, don’t leave money on the table.
Here’s the rewritten section with your requested focus:
📞 Need help understanding the claim paperwork or how your policy works? If you’re a client of Vargas & Vargas Insurance, give us a call at 617-298-0655—we’re here to walk you through the process step by step. If you’re working with a claims adjuster or a local independent insurance broker, don’t hesitate to reach out to them with your questions. Getting expert guidance now can ensure you recover everything you’re entitled to.
Are you assuming everyone in your household is automatically covered by your homeowners insurance? What about roommates, adult children, or a live-in relative—are they protected under your policy too? It’s a smart question—and the answer can impact whether a claim is paid or denied. In this article, we’ll break down exactly who is (and isn’t) covered under a standard homeowners policy, so you know where your protection starts—and where it stops.
Section 1: Who’s Covered Under a Standard Homeowners Policy?
Most homeowners policies are built around the idea of “named insureds” and their household members. Here’s who’s typically covered:
✅ You, the policyholder (named on the declarations page) ✅ Your spouse (if they live in the home) ✅ Relatives who live with you (like your child, parent, or sibling) ✅ Children temporarily away at school (often up to age 24 if full-time students) ✅ Other residents under your care (like foster children)
These people are usually protected for:
Property damage (personal belongings inside and outside the home)
Personal liability (if someone sues them for causing injury or property damage)
Medical payments to others (third-party injuries)
Section 2: Who Is NOT Covered Automatically?
Just because someone lives with you doesn’t mean they’re covered. Examples of people not automatically coveredinclude:
🚫 Adult children no longer considered dependents 🚫 Roommates or tenants (unless added to the policy) 🚫 Domestic partners not legally married 🚫 Guests or visiting relatives (beyond liability for injury on your property) 🚫 Household employees (may need separate coverage)
💡 If someone lives in your home but isn’t legally related or on the policy, they may not have any protection for their belongings or liability.
Section 3: What About Liability Coverage?
Homeowners insurance also includes personal liability protection—but only for covered individuals.
✅ Example: If your child breaks a neighbor’s window with a baseball, your policy likely covers the damage. 🚫 But if your roommate causes damage at a friend’s house, your policy probably won’t cover it unless they’re listed as an insured.
🏠 Liability coverage is personal—it follows the insured individual, not just the address.
Section 4: How to Make Sure the Right People Are Covered
✔️ Review your declarations page to see who’s listed ✔️ Tell your broker if your living situation changes (like a new roommate or relative moves in) ✔️ Ask about endorsements or separate renters policies for non-family members ✔️ Confirm coverage for college students living away from home
💬 Every insurer has slightly different guidelines, so always check the fine print.
Know Who’s Protected—Before There’s a Problem
You might assume your homeowners insurance covers everyone under your roof—but that’s not always the case. Now that you know who is typically covered (and who isn’t), you can make smart choices to extend or adjust your coverage before an uncovered loss happens.
📞 Already a Vargas & Vargas Insurance client? Call us at 617-298-0655 if you have questions about who’s protected on your policy. 💼 If you’re working with an adjuster or a local independent broker, ask them to review your household structure to ensure you’re fully protected.
If you’ve recently been in an accident — or even just filed a small claim — you might be wondering: “Will this make my insurance go up?”
It’s a fair question. Auto insurance pricing can feel like a mystery, and policyholders are often surprised by what causes a rate increase (or doesn’t). Whether your claim is small or serious, understanding how insurers calculate risk can help you make smarter decisions — before and after a claim.
In this article, we’ll explain exactly how a claim can affect your premium, what types of claims are most likely to trigger an increase, and what you can do to minimize the impact.
Will Every Claim Increase My Insurance Rate?
Not necessarily. While it’s common for rates to go up after a claim, it depends on several key factors:
Who was at fault?
What type of claim was filed?
How severe was the damage or injury?
How many claims have you filed recently?
What’s your insurer’s specific pricing model?
If the accident was your fault, there’s a strong chance your premium will increase at your next renewal — but the amount varies widely.
What Types of Claims Affect Your Rate the Most?
Here’s a breakdown of how different types of claims typically impact your premium:
🔺 At-Fault Accidents
These are the most likely to result in a rate increase, especially if property damage or injuries are involved. In Massachusetts, your premium may increase for up to 6 years.
⚖️ Not-At-Fault Accidents
Generally, these do not impact your rate. However, too many not-at-fault claims can make you appear high-risk, especially if they’re paired with other violations.
Comprehensive claims typically have minimal impact on your rate, especially if it’s your first one.
🚘 Glass-Only Claims
In most cases, windshield or glass claims do not affect your premium. They’re usually treated as minor comprehensive losses.
How Much Can Your Auto Insurance Go Up After a Claim?
Rate increases vary based on your insurer and situation, but here’s a general idea:
Claim Type
Estimated Rate Increase
First at-fault accident
20%–40%
Multiple at-fault claims
50%+
Comprehensive claim
0%–10% (usually no increase)
Glass-only claim
0%
In Massachusetts, insurers also apply surcharge points for at-fault accidents, which directly affect your premium for multiple years.
How Can You Avoid or Minimize a Rate Increase?
If you’re worried about a rate hike, here are a few strategies:
Accident forgiveness: Some carriers offer forgiveness for your first at-fault claim.
Raise your deductible: A higher deductible can lower your premium and discourage filing small claims.
Pay out of pocket: For minor damage below or near your deductible, it may be smarter to avoid filing altogether.
Safe driver discounts: Maintain a clean driving record to qualify for policy credits or reductions.
Bundle your policies: Insurers may soften a rate increase if you also carry home, renters, or umbrella coverage with them.
Final Thoughts: Should You File That Claim?
At the end of the day, a claim doesn’t always mean your rate will skyrocket — but it can if you’re at fault or if you’ve filed multiple claims in a short time.
Now that you understand how insurers evaluate risk and pricing, you’re better prepared to weigh the pros and cons of filing a claim. If you’re unsure, talk with your insurance broker before submitting it. They can walk you through the long-term cost implications and help you decide what’s best for your situation.
Conclusion: What You Should Do Next
Accidents happen — but rate increases don’t have to. You’ve now learned which types of auto claims can impact your premium and by how much.
The next step? If you’ve recently been in an accident or are thinking about filing a claim, connect with your broker first. They’ll help you understand your options and how it affects your long-term insurance costs.
Need help reviewing your policy or comparing quotes after a recent claim? The team at Vargas & Vargas Insurance can be reached at 617-298-0655 and will make it simple.
Have you received a letter saying you’re being sued for something that happened at your home or on your property? Or, are you wondering what your insurance covers—and what it doesn’t—when someone gets hurt or claims damages? This kind of letter is more common than you might think. Whether it’s a neighbor tripping on your steps, a contractor getting injured in your yard, or even a guest’s dogfight with yours—liability lawsuits can blindside homeowners and renters alike. In this article, we’ll break down what happens if you’re sued, how your insurance policy helps (or doesn’t), and what steps you can take right now to protect yourself—including why you should review your liability coverage today.
Section 1: Why You Might Be Sued for an Incident on Your Property
Accidents happen—but when they happen on your property, you can be held legally and financially responsible.
Common reasons people get sued include:
A guest trips and falls on an uneven walkway
A tree from your yard falls on a neighbor’s car
A child gets injured on your trampoline or pool
A contractor slips on icy steps while making repairs
A visitor’s pet is injured by your pet
Important: Even if it wasn’t your fault—or you weren’t even home—you can still be named in a lawsuit.
Section 2: What Does Homeowners (or Renters) Insurance Cover in a Lawsuit?
If you’re insured, your policy may include personal liability coverage, which can help pay for:
Legal defense costs (even if you’re not found liable)
Medical expenses for the injured party
Settlement amounts or court judgments up to your coverage limit
💡 Most standard policies offer $100,000–$300,000 in liability coverage.
But what if your case exceeds that? Or what if the incident isn’t covered?
Section 3: 3 Critical Questions to Ask About Your Liability Coverage
Before you’re in legal trouble, review your policy and ask:
Do I have enough liability coverage for a serious claim? A bad injury or lawsuit could easily cost more than $300,000. If you have assets (like a home or retirement savings), you could be personally responsible for the rest.
Does my policy cover incidents involving guests, contractors, or pets? Some policies exclude specific activities or animals. Always check exclusions.
Should I consider umbrella insurance? Umbrella policies add extra liability protection—usually in $1 million increments—for a relatively low cost.
Section 4: What to Do If You Get a Lawsuit Letter
If you receive a letter or legal notice: ✅ Don’t ignore it – Lawsuits are time-sensitive. ✅ Notify your insurance company immediately – They’ll guide you through next steps. ✅ Avoid contacting the person suing you directly – Let your insurer or lawyer handle all communication. ✅ Gather documentation – Photos, witness statements, and your policy details will be important.
Stay Protected and Proactive
At the end of the day, anyone can face a lawsuit—even for something they didn’t directly cause. And when it happens, you’ll want to be sure your insurance policy actually protects you. Now that you know what personal liability coverage can and can’t do, it’s time to take action.
✅ Review your coverage. ✅ Ask the right questions. ✅ Speak to a trusted expert.
🔐 Need help reviewing your policy or increasing your protection? Reach out to the team at Vargas & Vargas Insurance at 617-298-0655, or connect with your independent broker today. We’re here to make sure you’re never left exposed.
Do you know exactly what your policy would – and wouldn’t – pay for if disaster struck tonight? Has your latest renewal bill jumped so high you’re questioning whether you can afford to stay put?
In this post we’ll demystify two mounting threats to American homeowners – hidden flood-coverage gaps and rapidly rising premiums – so you can protect your biggest asset before the next storm or statement arrives.
You’ll see why standard policies ignore the nation’s most common catastrophe, what’s really pushing rates up, and the practical moves smart owners use to stay covered without overpaying.(The conversation is inspired by Lew Sichelman’s “The Property Insurance Conundrum” in Banker & Tradesman.)* (Banker & Tradesman)
1 | The Flood Gap Most People Miss
Low-risk ≠ No-risk
Only 3.3 percent of U.S. homeowners carry a National Flood Insurance Program (NFIP) policy, yet almost one-third of all NFIP claims originate outside FEMA’s high-risk zones. (FloodSmart, FloodSmart) In other words, your address can be labeled “moderate” and still wind up under water.
Why your homeowners policy won’t help
Standard coverage pays for fire, theft, wind, hail and liability – but not for water that first touches the ground. Just one inch of floodwater can rack up $25,000 in repairs to flooring, drywall, wiring and HVAC – all on your dime if you have no separate flood policy. (FEMA)
Who should look again at flood insurance
Homes near any creek, pond or storm drain
Finished basements or ground-level living space
Areas with heavy rain, rapid snowmelt or recent development that speeds runoff
Preferred-risk NFIP policies often start below $500 a year, and many private carriers now compete with broader coverage or higher limits. (Remember: most policies carry a 30-day waiting period, so you can’t buy protection the night before a storm.)
2 | The Premium Pinch Hitting Every ZIP Code
Numbers that turn heads
90 percent of owners saw premiums rise in the past two years, and 57 percent say if costs keep climbing they may have to move. (MBA Newslink)
1 in 7 owner-occupied homes – 11.3 million properties – are now completely uninsured, many because the price feels out of reach. (LendingTree)
Six forces driving rates higher
Record catastrophe losses (wildfire, hurricane, derecho) deplete carrier reserves.
Reinsurance costs – insurers’ own insurance – have spiked, and the bill rolls downhill.
Construction inflation makes every claim costlier (lumber, copper, labor).
Tech-filled houses mean pricier contents and smart-home systems to replace.
Litigation hot spots push carriers to raise rates or exit entire states.
New climate-aware risk models re-rate formerly “safe” neighborhoods.
3 | Six Proven Ways to Keep Coverage Affordable
Annual independent market check – carriers react differently; switching can save hundreds.
Adjust deductibles – raising a $1,000 deductible to $2,500 often trims 5-12 percent (keep an emergency fund).
Bundle home, auto and umbrella – multi-policy discounts still knock 10-25 percent off.
Harden your home – impact-resistant roof, leak-sensing shut-off valves or wildfire-wise landscaping win sizable credits.
Claim clean-up – small, preventable claims can haunt you for five years; fix what you can out-of-pocket.
Document upgrades – new roof or wiring? Send photos and receipts to your broker mid-term for an immediate rate review.
4 | Dropped or Non-Renewed? Act Fast.
Call your insurance broker the day the letter arrives – you often have 45-60 days to remedy issues.
Get the carrier’s written reason – a quick roof repair or tree trim may restore eligibility.
Shop surplus-line and state “last-resort” markets to avoid a dangerous coverage lapse.
Keep proof of mitigation – photos of upgrades and inspection reports help negotiate your next quote.
5 | Why “Self-Insuring” Is Rarely Safe
A moderate house fire averages over $320,000 for structure and contents, and liability suits can hit seven figures. Mortgage lenders will also force-place coverage at two-to-three times normal rates if you let a policy lapse. Unless you can write a six-figure check tomorrow, dropping insurance is gambling with your future.
6 | Key Takeaways
Flood is America’s most common disaster, yet standard homeowners policies exclude it.
Premium pressure is real, driven by climate, reinsurance and rebuilding costs.
You’re not powerless: shop annually, harden your home and close flood gaps before the next headline hits.
Ready for a true policy check-up?
Vargas & Vargas Insurance is an independent agency that works for you, not the carrier. We compare dozens of companies, uncover every discount, and explain in plain English what’s covered, what’s not, and what it will really cost to fill the gaps – flood included.
